(β) is about relative risk, it is a statistical measure that provides a historical relationship between investment vehicles, portfolios and a market index, using the S&P500. For example, a portfolio with a Beta 1.2 will likely go up 20% more than the market when the market goes up, but also it means that the portfolio will likely go down 20% more than the market when the market goes down. Lower Betas have less upside and downside volatility.
Why Use MYOBETA?
To determine what 401k fund you should pick.
To determine what risk you need to take for a major purchase.
To determine how long your retirement nest egg will last and what can be taken out of it every year, given the risk level of the investments you have selected.
Any other goal where you wish to grow, put in or take money out every year.
MYOBETA helps address several variables if you own stock, mutual funds, have an IRA, 401k, or 403b, you are faced with a series of seemingly unanswerable questions about the risk you are taking with your money:
What is my emotional capacity for risk?
How will I know what risk level is right for me?
Won’t my risk tolerance change over time and with events?
How will I know to make adjustments to my portfolio?
Is my description of risk clearly understood by me and my advisors?
Mind Your Own Beta is available for both the iPhone and iPad. MYOBeta will provide a real number (Beta) which can be compared to your current investments or help you in selecting your investments, such as which 401k fund or stocks are appropriate for you. It can also be used to determine how much is needed to provide your desired retirement income or how much needs to be invested to provide for your children’s educational needs. Virtually all investments have a Beta, so you can match your Beta with the one that is closest to yours. Your results are stored and may be reviewed or sent via email to you or your advisor. You can use the App for two people with an unlimited number of different analysis scenarios. Additional people (Users or clients) can be added with an In-App purchase so Advisors can use the App for all their clients. This allows for advisors and brokers the ability to store all their clients. Be sure to fully read the disclaimer before doing an analysis. Mind Your Own Beta was developed from a concept by a Senior Portfolio Manager at a Global Financial Services Firm with 40 years of Financial industry experience.
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